PowerShares Lists Small-Cap ETF Based on Relative Strength

July 19th at 8:00am by Tom Lydon

Invesco PowerShares is expanding its suite of DWA technical leaders funds as the company launches the first U.S. small-cap exchange traded fund based on the relative strength methodology.

According to a press release, the PowerShares DWA SmallCap Technical Leaders Portfolio (NYSEArca: DWAS) will begin trading on July 19. The fund will try to reflect the performance of the Dorsey Wright SmallCap Technical Leaders Index, which follows 200 companies based on relative strength characteristics from a small-cap universe of 2,000 U.S.-listed companies.

The DWA selection methodology will try to measure the price trends of a stock performing relative to other companies within its own industry. The relative strength is calculated by dividing the price performance of the small-cap stock by the price of the broad small-cap index over the same period.

“We are pleased pleased to once again partner with Dorsey, Wright & Associates for the PowerShares DWA SmallCap Technical Leaders Portfolio (DWAS), providing investors with a full suite of Technical Leaders ETFs based on the firm’s respected research.” Ben Fulton, Invesco PowerShares managing director of global ETFs, said in the press release. “The DWA Technical Leaders strategy, based on relative strength, is widely followed by advisors and professional asset managers.”

Other funds in the DWA technical leaders suite include:

  • Powershares DWA Technical Leaders Portfolio (NYSEArca: PDP)
  • Powershares DWA Emerging Market Technical Leaders Portfolio (NYSEArca: PIE)
  • Powershares DWA Developed Market Technical Leaders Portfolio (NYSEArca: PIZ)

For more information on new product launches, visit our new ETFs category.

Max Chen contributed to this article.

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